Frequently Asked Questions
General Information
Q: What is the history of Canada Savings Bonds?
The roots of Canada Savings Bonds go back to the First and Second World Wars when War Savings Certificates and Victory Bonds were introduced to help finance the war effort.
These investments were popular because they were:
- Redeemable at any time without penalty;
- Extremely safe and secure (guaranteed by the government); and
- Easy to purchase with respect to method of payment, denominations available, and availability of purchase.
The first series of Canada Savings Bonds was issued in 1946. Over the years, several important innovations have been made to Canada Savings Bonds such as the introduction of the fully registered bonds with interest payable annually and eligibility provisions were broadened to include estates and executors of estates, trusts, and charities.
RRSPs, Registered Pension Plans and Deferred Profit-Sharing Plans were first considered acceptable forms of registration in 1974.
In 1977, regular interest "R" bonds and compound interest "C" bonds were introduced, a revolutionary change in which the old style coupon bonds were eliminated. Direct Deposit of interest payments was also made possible with the introduction of the new bonds.
In 1995, a new RRSP option allowed investors to register their Canada Savings Bond series S50 directly into an RRSP, The Canada RSP, without needing a self-directed plan. In early 1996, investors holding series S42 to S49 were also permitted to register their Canada Savings Bond directly into the new RRSP option.
In 1998, the Canada Premium Bond was introduced.
Today, Canada Savings Bonds (the CSB and the CPB) offer more choices than ever, with no-fee RRSP and RRIF options, and are on sale for 6 months of the year.
Q: How can I obtain a Social Insurance Number (SIN)?
Individuals who do not have a SIN may obtain one by contacting their local Social Development Canada office.
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Q: How do I replace bonds that have been lost, stolen or destroyed?
Please call toll-free 1 800 575-5151, Monday to Friday, from 8 am to 8 pm, Eastern Time. In the case of stolen bonds, you should also notify your local police department as you will require a copy of their report.
When notifying the Bank of Canada, try to provide as much information as possible, including the complete bond serial number and the exact name (registration) on the bond. Accordingly, we suggest when purchasing bonds that you keep a separate record with all your bonds’ serial numbers as this information will be useful should you need to report lost, stolen or destroyed bonds.
To avoid unnecessary delay, it is important to report the loss of your bonds to us immediately. Once we are notified, there is a prescribed waiting period of 120 calendar days before you can have your bonds replaced – the waiting period is applicable for both unmatured and matured bonds. Should you not have found your lost bonds during the waiting period, you will need to contact us again to obtain the necessary Bond of Indemnity documentation for completion. Upon receiving and approving the properly completed documentation, we will replace your unmatured bonds or issue a cheque for the value of your matured bonds.
Q: Why do I have to wait 120 days before you can start the process to replace my lost / stolen certificates?
The process for replacing a lost certificate is complex both for the retail debt program and the bondowner. As well, our experience is that, in the vast majority of cases, the lost certificates are found by the bondowners shortly after they have been reported missing. Therefore, the process begins with a period of time during which the bondowner is asked to try to locate the certificate. In the case of lost unmatured certificates, the certificate will continue to earn interest at the applicable interest rate.
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Q: Can bonds be transferred?
Transfers are permitted in limited cases. For example, further to the death of the bondowner, a change of name due to divorce, marriage, adoption or legal name change has occurred. In these cases, appropriate documentation must be provided. For more information, please call toll-free 1 800 575-5151, Monday to Friday, from 8 am to 8 pm, Eastern Time. Transfers to RRSPs, RRIFs and other registered plans are also permitted.
The toll-free number is 1 877 899-3599, for a CSB purchased through the Payroll Savings Program (please refer to the appropriate terms and conditions).
Q: Where can I find out about purchasing the CSB through my workplace?
Please ask your HR or Payroll department if your organization offers the Payroll Savings Program.
Organizations interested in offering their employees this option can call toll-free 1 888 467-5999, Monday to Friday, from 8 am to 6 pm, Eastern Time.
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Q: How can parents cash their children's bonds?
A bond registered in the name of a minor, who is unable to sign his/her name, may be redeemed against the signature of a parent, guardian or tutor who has legal custody of the bondowner. The birth certificate of the bondowner shall be provided as evidence of age. In the case of a person born and baptized in the province of Quebec, a certificate of baptism may be accepted as evidence of age. Where an official guardian or tutor has signed, a certified copy of the guardianship or tutorship papers are required.
Q: Do I have to declare annually the interest on my regular interest "R" and compound interest "C" bonds for taxation purposes?
Yes. All "R" bond owners, and since 1990, owners of "C" bonds (Series 45 and up) must declare annually the interest earned during the year.
A T5 slip is issued to bondowners when earned interest for the year is at least $50.
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Q: Why and when should I provide my Social Insurance Number?
Income tax legislation requires that registered owners provide their Social Insurance Number (SIN) for any investments generating interest and that financial institutions make a reasonable effort to obtain it. This requirement stems from the need for the SIN to be recorded on the individual’s tax information slips and forms (T5) and for this information to be sent to the Canada Revenue Agency.
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